Société Générale's latest research indicates that gains in Asian stocks this year are almost entirely due to three semiconductor leaders: TSMC, Samsung, and SK Hynix. Excluding these three companies, Asian stocks have underperformed U.S. equities, with the South Korean market entering a technical bear market. Capital is reportedly shifting towards India and Japan as investors grow cautious about AI's inflated valuations.
Asian stock performance is overly concentrated in three semiconductor giants, exposing broader market fragility as AI valuations face scrutiny.